Business and Commerce

Plain English Breakdown

The official source material does not provide information on whether rounding cash transactions to the nearest nickel is added as an exemption under Tennessee's Consumer Protection Act.

Act to Allow Rounding Cash Transactions

This act authorizes businesses and financial institutions in Tennessee to round cash transactions to the nearest nickel when exact change is unavailable.

What This Bill Does

• Authorizes public or private entities that accept cash payments from customers to round off transaction amounts to the nearest nickel if they do not have exact change available.
• Specifies rules for rounding: down to the nearest five-cent interval if the amount ends in $0.01-$0.02, up if it ends in $0.03-$0.04, and so on.
• Exempts electronic transactions from this rounding rule.
• Requires entities collecting taxes or fees to round for customer transactions but remit exact amounts to the government.

Who It Names or Affects

• Businesses and financial institutions that accept cash payments from customers.
• Entities collecting taxes, fees, surcharges, or other assessments from the public.
• Customers involved in cash transactions with businesses and financial institutions.

Terms To Know

Mixed-tender transaction

A transaction involving both cash and non-cash payment methods.

Non-cash payment system

Payment systems that do not involve physical currency, such as credit cards or digital payments.

Limits and Unknowns

• The act does not specify an effective date.
• It is unclear how this will affect businesses and consumers in practice.

Official Summary Text

The United States treasury has suspended production of the penny due to rising costs associated with its production. While the penny is still legal tender and may be used for transactions, the number of available pennies will decrease as loss or damage o
ccurs without replacement.

This bill requires a public or private entity that is engaged with business with the public and accepts cash payments to round off all figures in the total transaction to the nearest nickel if they do not have exact change available in accordance with al
l of the following:



If the total amount ends in $0.01 or more but less than $0.03, the entity must round down to the nearest five-cent interval.


If the amount ends in $0.03 or more but less than $0.05, the entity must round up to the nearest five-cent interval.


If the total amount ends in more than $0.05, but less than $0.07, the entity must round down to the nearest five-cent interval.


If the total amount ends in $0.07 or more, but less than $0.10, the entity must round up to the nearest five-cent interval.


The entity must not round to the nearest nickel transactions completed electronically and for mixed-tender transactions, rounding applies only to the cash portion.

TAXES

This bill applies to entities engaged in collecting taxes, fees, surcharges, or other assessments, including sales tax. The total amount of the tax, fee, surcharge, or assessment to be collected must be rounded for purposes of completing the transaction
with the customer. However, the entity must remit the exact amount to the appropriate governmental entity.

TENNESSEE CONSUMER PROTECTION ACT OF 1977

Present law provides exemptions to the application of the Tennessee Consumer Protection Act of 1977. This bill adds to such list of exemptions rounding a cash transaction to the nearest nickel if the penny is no longer in production.

ON FEBRUARY 23, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1744, AS AMENDED.

AMENDMENT #1 makes the following revisions:



Authorizes, instead of requires, a private entity that is engaged in business with the public and accepts cash payments
to round off all figures used in the transaction amount to the nearest nickel, if exact change is not available.



Authorizes a financial institution that provides currency in exchange for a payment instrument received
to round off all figures used in the transaction amount to the nearest nickel, if exact change is not available.



If the total amount of the transaction ends in more than $0.05, but less than $0.08, authorizes the entity to round down to the nearest five-cent interval.



If the total amount of the transaction ends in more than $0.08, but less than $0.10, authorizes the entity to round up to the nearest five-cent interval.



Removes the requirement that public entities collecting taxes, fees, surcharges, or other assessments round transactions to the nearest nickel for the purpose of completing the transaction with the customer.

Current Bill Text

HOUSE BILL 1744
By Baum

SENATE BILL 1810
By Reeves
SB1810
011357
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 9;
Title 45; Title 47, Chapter 50; Title 47, Chapter 18
and Title 67, relative to cash transactions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 47-18-111(a), is amended by adding
the following as a new, appropriately designated subdivision:
( ) Rounding a cash transaction to the nearest nickel if the penny is no longer in
production;
SECTION 2. Tennessee Code Annotated, Title 47, Chapter 50, is amended by adding
the following as a new section:
(a) If a public or private entity, or its employees or contractors, is engaged in
business with the public and accepts cash payments, but does not have exact change
available during a cash transaction, then the entity shall, in lieu of calculating the total
transaction amount to the nearest penny, round off all figures used in the total
transaction amount to the nearest nickel, subject to the following conditions:
(1) If the total amount ends in one cent ($0.01) or more, but less than
three cents ($0.03), then the entity shall round down to the nearest five-cent
interval;
(2) If the total amount ends in three cents ($0.03) or more, but less than
five cents ($0.05), then the entity shall round up to the nearest five-cent interval;
(3) If the total amount ends in more than five cents ($0.05), but less than
seven cents ($0.07), then the entity shall round down to the nearest five-cent
interval; and

- 2 - 011357

(4) If the total amount ends in seven cents ($0.07) or more, but less than
ten cents ($0.10), then the entity shall round up to the nearest five-cent interval.
(b) For purposes of subsection (a), the hundredths place is used to determine
the cents in which a total amount ends.
(c) Rounding to the nearest nickel does not apply to transactions conducted
electronically. For mixed-tender transactions, rounding to the nearest nickel applies only
to the portion of the transaction paid in cash. Rounding under this section does not alter
or affect the exact amounts authorized, cleared, or settled through any non-cash
payment system.
(d) This section does not affect the rounding rule in § 67-6-504(h) for computing
the sales tax due in a transaction, and does not relieve public or private entities from the
duty to calculate sales tax to the penny and remit to the department of revenue the exact
amount of sales tax shown on an invoice or receipt.
(e) This section applies to public entities, and their employees and contractors,
engaged in collecting only taxes, fees, surcharges, or other assessments. In such case,
the total amount of the tax, fee, surcharge, or assessment must be rounded pursuant to
subsection (a) for purposes of completing the transaction with the customer, but the
public entity shall remit the exact amount of the tax, fee, surcharge, or assessment due
to the appropriate governmental entity.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.